Entrepreneurs are great at creating something out of nothing.
However, they will get to a point, usually around the $1M - $3M revenue mark (sometimes sooner, sometimes later) where buisness owners find themselves managing HR issues, CRM’s, processes, cash-flow, P&L’s, buried in spreadsheets and tech platforms that are clumsily taped together.
You find yourself buried in operational detail. The growth of the business plateau’s, or worse it continues to expand without the necessary foundation in place and your growing customer base becomes increasingly unhappy.
Leadership development is one of the most important drivers of profitability because its benefits and failures touch every piece of the business.
Your profitability depends on those that lead your teams and how successful they are in these 5 areas: culture, engagement, customer retention, connection to the mission, and leadership alignment.Culture is the mindset and behaviors, engagement is employee enthusiasm and production, customer retention is delivery and execution, connection to the mission is strategy and goals, and leadership alignment is communication.To ensure your company is run as efficiently as possible, it is imperative your leadership exemplifies the standards you wish your business to portray.
You can’t expect employees or managers to believe efficiency is a top priority if you do not emulate those standards in your everyday business practices.Continuous improvement is not just about getting your employees promoted (although that is definitely part of it), it's about improving their performance in their current job. It is also about changing the job and their responsibilities as they improve—so that they can continue to grow.
The latter is more complicated. You need the same tasks accomplished, no matter how long the employee doing them has been in the job. But, you or the employee can always discover a better way to do a task.
Every business faces human capital risks that present threats to its success.
Human Capital Risk management focuses on ensuring your employees are given every opportunity to develop, grow and succeed. Identifying what could go wrong, evaluating which risks should be dealt with and implementing strategies to deal with those risks. Leadrite Co. sets out how to identify the risks your business may face. It also looks at how to implement an effective human capital risk management program which can increase your business' chances of success and reduce the possibility of failure.